Good morning!

Utilitywise (LON:UTW)

Share price: 207.5p
No. shares: 74.7m
Market Cap: £155.0m

Trading update - today's update relates to H1 of y/e 31 Jul 2015, so it's covering the six months to 31 Jan 2015. It's in line with expecations;

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There is then a rather long-winded explanation as to how the company has recently prioritised work to extend existing contracts, and how this has reduced the size of the pipeline. However, since the company states that this doesn't affect revenue, profit or cashflow, then it's not a concern in my opinion (unless the explanation given is obscuring some other problem, but one assumes that the explanation given is truthful, unless there is a specific reason not to believe it).

The Directorspeak today also sounds encouraging;

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My opinion - I've been bearish on this share in the past, as I don't like their revenue recognition policy, and I have concerns that the business model may be vulnerable to changes in regulatory policy, or that the energy companies themselves could pull the plug on commission payments to intermediaries.

That said, the share price has come down quite a long way, and is now looking sufficiently cheap on valuation metrics to mean that it could be worth considering at this price - i.e. risk:reward is starting to look potentially interesting for a perhaps 20-30% recovery in share price from recent lows? So more of a possible trading idea than a long term investment, is my current thinking on this share.

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Note that the key valuation measures (PER and divi yield) are good value, and the Quality scores are very high. So a favourable mix there, if the business model is sustained - and there don't seem to be any immediate threats to it.

I'll have to ask my new charting friends what they think about the chart, but it looks to me as if it's finding support around 200p, which could indicate a turning point perhaps, which is more likely now the company has confirmed current trading & the outlook are fine.

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SkyePharma (LON:SKP)

Share price: 299p
No. shares: 104.8m
Market Cap: £313.4m

Debt repaid - this pharmaceutical company looked a basket case a few years ago, laden with debt. However, it's rehabilitation looks complete now, with the company…

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